Honda research arm cruises into north San Jose

Share this:

A north San Jose research building at 70 Rio Robles that’s been leased to
Honda R&D Americas. A Honda research unit has struck a deal that will
enable the automotive giant to establish a tech-oriented operation in San
Jose.
George Avalos / Bay Area News Group

SAN JOSE — A Honda research unit has struck a deal that will enable the automotive giant to establish a tech-oriented operation in San Jose.

Marking the latest effort by big automakers to establish a foothold in Silicon Valley, Honda R&D Americas has leased a 33,000-square-foot research building at 70 Rio Robles in north San Jose’s Rio Tech office complex, according to Santa Clara County public records.

“Honda R&D Americas’ move will reinforce our Valley’s reputation as the global center of automotive innovation,” San Jose Mayor Sam Liccardo said. “We look forward to supporting their success and growth in north San Jose.”

A growing number of automobile companies have opened operations in Silicon Valley, hoping to recruit from the region’s world-class pool of tech talent and seeking to tap the know-how in the area.

“There is an automotive tech renaissance going on in Silicon Valley,” said Ben Knight, a senior vice president with CBRE, a commercial realty firm that is seeking tenants for the seven-building, 400,000-square-foot Rio Tech campus where Honda R&D leased space. Knight added, “Automotive tech companies want to locate in Silicon Valley so they can be near engineering talent and to be able to collaborate with other companies.”

Ford, General Motors and Nissan are among the automotive behemoths that have established beachheads in Silicon Valley. These long-time automakers have joined cutting-edge companies such as electric vehicle manufacturers Tesla and Nio USA in setting up shop in the Bay Area. The Nio headquarters on North First Street in San Jose is just a few blocks away from the Honda R&D offices.

“Right now, there is a dearth of single-story buildings that are free-standing and can accommodate true research and development,” Knight said.

Tech behemoths such as Google, Apple, Facebook and Amazon have gobbled up huge chunks of office space in Silicon Valley, using a combination of building leases and property purchases, in a quest for locations to accommodate their fast-expanding operations.

The head-spinning corporate expansions and staffing additions have squeezed out companies that don’t require huge blocks of space or big buildings for their new operations, which has put a premium on smaller or medium-sized structures.

“What you see with auto tech companies, they really need a true research building where they have the flexibility and the room to tinker,” Knight said. “This type of space is very much in demand and in short supply.”

The Rio Tech campus has been renovated and has 190,000 square feet of space that’s available for leasing. Potentially, 150 or more Honda R&D employees could work in the company’s new offices. Honda didn’t respond to a request for a comment. The Rio Tech complex has enough elbow room for Honda or other tenants to expand.